The Mafia & the Stock Market

America’s wealthy oligarchy/mafia is sucking up the profits from Wall Street. How they use YOU and take your money.

Investors411 has for years spoken out against the scams, ponzi schemes and casino capitalism of Wall Street. Today’s focus are two legitimate skimming operations that suck YOUR profits, if you are fortunate to make any – “High Frequency Trades” and “Dark Pools.”

Much of the data comes from Chris Martinson interview of Joe Saluzzi. LINK & Wall Street in Now Controlled By Machines

High frequency trades are growing and they now take up “50 to 70″% of the trades. Perhaps 80% if you believe CNBC’s Jim Cramer. Dark Pools have grown to “about 12% of all trades in 2008 to 30% in 2010″ according to data [Saluzzi]. High Frequency Traders also use these black pools or off exchange markets to traded.

As described in the past these HFT’s with their lightning quick computers look for trading imbalances in fractions of seconds and automatically make the trade. Their success ratio on trades is a guaranteed 100%.  To get into a hedge fund or brokerage that makes HFT’s you have to be part of the financial oligarchy. Net worth probably at least a minimum $10 million and and sallary over 7 figures a year.

How you loose and how trading strategy is dramatically altered because of this tomorrow

EGYPT

Many thanks to Popeye in the comments section who is keeping us all updated on the Egyptian crisis. Starting with Tunisia, Egypt and other dictators/oligarchs are ow going to be forced to give people greater freedoms. The Technology mega trend is positively impacting world change. Through it people are becoming more aware of their oppression.

al Jazeera YOU TUBE continues to be the bet resource. Diverse panel of significant world wide experts discussing Egypt as I write.

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KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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Index Percentage Volume
Dow +0.25% flat
NASDQ +0.56% down
S&P 500 +0.29% down
Russell 2000 +0.19% -

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • Yawn, yet another marginal move higher in weak volume typical of the Fed POMO melt ups of the past year.
  • Monthly jobless number last Friday showed +36,000 jobs –  a significant disappointment. Yet the rate dropped from 9.4% to 9.0% because another 500,000+ people are so discouraged that they were dropped from the rolls. That over 1.1 million dropped in the last two months as the headline figure dropped from 9.7% to 9.0%. Bottom Line - The headline unemployment figure is  no longer relevant.
  • Mantra till it no longer worksstill endorsing the concept that the Fed POMO [schedule] is and will be the key factor in keeping a long term rally going. (see past Investors411 for many, many moons on this topic).
  • Earnings season is basically over.
  • Here’s yet another analyst Mark Mansfield calling for a correction. Good points if you use backtesting, history, technical analysis to measure stocks. However today’s market is run by the Fed POMO, high frequency traders and

Here’s the January numbers just published at 8:30 AM EST - +36,000 jobs below expectations and rate is -9.0% Very hard to understand drop in rates with so few jobs created. December was revised up to +121,000 jobs from 103,000

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Significant Shorter Term Forecasting Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar rose  +0.38% Friday. The three day dollar rally should have hurt stocks, but stocks held onto gains. Longer term trend three weeks of dramatic fall is  bearish for dollar, and for stocks. Overall for stocks still = Bullish
  • McClellan Index – (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Fell to to +8.78 Just above the middle of range. Equal up side and down side potential = Neutral

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Reading The Tea Leaves

Same old stuff – The Fed is dominating stocks with its POMO. If Egypt’s crisis was only a minor irritation to US equities hard to see any other fundamental having a major negative impact.

What to watch today

UUP – Again, The dollar tracking ETF. UUP in three week fall. The fact that UUP rose for the last three days in significantly reduced volume means a trend reversal is not yet apparent. Most likely an oversold rebound.

Remember – The dollar is a contrarian indicator. Bad dollar = good stocks

AAPL –  The tech general directly below an  upside breakout point. IBM a smaller , but important tech giant has broken out.

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Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions).

Current ETF Positions. (oldest held positions listed first)(see comments section where all trades are first announced)

  • UWM (leveraged ETF 2x small cap stocks) Stop placed on what it was bought for and will sell 1/2 if 5+% gain
  • REMX 1/2 position sold for +5% profit on Friday
  • DBC

Investors411 #1 new area of investments is commodities. For the past few weeks there has been a significant increase in volume in this area = Investors are coming off sidelines to buy.

UCO -(2x oil prices)  On dip

REMX (Rare Earth ETF) – Really believe this a good long term holding. Already chased in 1/2 the position on a 5% rally. Will hold the rest. Considering buying more on a dip. Bought at 23.78

DGP – (ETF is 2X gold) .

DBC – (Commodities ETF) For a more complete list of commodity ETF’s see POSITIONS listed at top of blog Bought at 28.62 Stop loss at 5% below purchase price. DBC is tilted to energy. Perhaps preferable or a good alternative would be *DJP that is more agriculture and metals.

*RJA Agriculture commodities Index ETN New today Has dipped from high for last two days. another moderate dip an Investors will add to ETF portfolio. So considering DJP today & RJA on dips

UWM (2x small cap stocks) – Looking to take profits on 1/2 at 5%. Have set stop/loss for 1/2 40.02 -the price it was bought for.

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Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog for lists of potential stocks & ETF’s including ”YOUR Stock List.” (YSL#4) which is under construction.

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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